The US Senate has narrowly confirmed Stephen Miran, a senior economic adviser to President Donald Trump, to the Federal Reserve Board of Governors on Monday, just one day before policymakers convene for a closely watched meeting on interest rates.
Miran was confirmed in a 48-47 vote that largely followed party lines.
He replaces former Governor Adriana Kugler and is expected to take part in the Federal Open Market Committee (FOMC) meeting that begins Tuesday, where officials are widely anticipated to approve a 25 basis point cut to the benchmark interest rate.
Miran has served as chair of Trump’s Council of Economic Advisers and will take unpaid leave from that post while on the Fed board. However, he has not resigned his White House role, making him the first sitting administration official in decades to simultaneously serve at the central bank.
The unusual arrangement has drawn scrutiny from some economists and lawmakers who warn it could weaken the Fed’s independence.
The confirmation process, completed in less than six weeks, underscores the Trump administration’s push to exert greater influence over the central bank.
The president has been an outspoken critic of the Fed’s pace of rate cuts and has publicly pledged to secure a majority on the board.
Separately, a federal appeals court on Monday blocked the Trump’s efforts to dismiss Fed Governor Lisa Cook ahead of this week’s meeting.
The Trump administration sought to remove Cook over allegations of mortgage fraud, which she has denied.
Cook sued last month to prevent her removal, arguing that the president does not have the legal authority to fire her absent clear statutory cause.
The appeals court ruling means Cook will retain her voting rights at the September policy meeting.
The administration has indicated it plans to appeal the case to the Supreme Court.
Miran’s confirmation and the legal battle over Cook’s seat come at a pivotal moment for the Fed, as officials weigh the risks of slowing growth against persistent inflationary pressures.
The Fed’s latest interest rate decision will be handed down on Wednesday.